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Effective Competitive Sourcing: Beyond the RFP
Description of the Most important characteristics in selecting vendors chart
The "Most important characteristics in selecting vendors" chart is a pie chart that provides a visual representation of the characteristics that are considered most important in selecting vendors. The chart segments are not labeled with values, but their approximate values and text labels are as follows: 48% Technology capabilities, 30% Easy to do business with, 14% Their ecosystem, 7% Existing deep relationship, and 1% None of these.
Drop outdated RFP practices for more flexible, agile sourcing methods.
Pursue efficient and flexible sourcing
The RFP as we know it is a legacy of the past, and is not always the most effective tool in competitive procurement. All too often companies follow a RFP process because it’s what they have “always done.” and get repetitive boilerplate back from vendors – all without necessarily solving the business problem the technology was intended for.
Enterprises need to forgo the old complex and lengthy RFP process and instead adopt efficient, standardized approaches to procuring IT products and services. There are better, faster ways to identify vendors, evaluate capabilities and solicit pricing through agile sourcing.
What: IT executives will understand more about overhauling the RFP process and replacing it where possible with more agile and efficient approaches to sourcing. These approaches, based in business need, help break down walls between functional groups, while still creating a competitive environment among vendors.
Why: Enterprises that adopt Agile Technology Sourcing report higher year-over-year revenue increases and get higher percentages of revenue from digital transformation initiatives. With budgets tightening from the effects of the Covid-19 pandemic, the increased revenue, agility, speed, and cost savings from agile sourcing are imperative.
How: To modernize its procurement practices, your organization needs the following steps:
- Quantify sourcing challenges and legacy technology
- Pursue agile sourcing
- Follow a process
- Follow updated RFP best practices when you do need an RFP